Bitcoin News: Bitcoin Price Faces Pressure—Can $90K Flip to Support?

Bitcoin (BTC) plunged from $93,700 to $89,250 in under an hour on March 3, erasing nearly half of its recent gains. The sudden drop comes amid heightened macroeconomic uncertainty, fueled by China’s retaliatory tariffs and investor skepticism over Trump’s proposed U.S. strategic crypto reserve.Despite this, Bitcoin's chances of reclaiming the $90,000 support remain strong, with potential catalysts including institutional accumulation, U.S. economic concerns, and long-term bullish fundamentals.China’s Tariff Retaliation Sparks Market Sell-OffBitcoin's decline coincided with a 1% drop in S&P 500 futures, following China's announcement of retaliatory measures against the U.S. 10% import tariff hike. Economists warn that escalating tensions could:Increase U.S. food and tech costs by targeting key exports like soybeans and rare earth minerals.Shrink U.S. GDP by up to 1.3%, adding pressure on financial markets.Trigger broader economic instability, potentially leading investors toward safe-haven assets like Bitcoin.Hedge fund manager Anthony Scaramucci warned that further escalations could inflict significant economic damage, fueling additional volatility across global markets.Investor Skepticism Over Trump’s Strategic Crypto ReserveOne of Bitcoin's (BTC) major weekend catalysts was Donald Trump’s announcement that BTC and ETH would be part of a U.S. strategic digital asset reserve. While this initially drove prices higher, reality quickly set in:Approval Process: Establishing a government-backed crypto reserve requires congressional approval, which could take months or even years.Funding Uncertainty: Legal experts question how the reserve would be funded, with no clear mechanism outlined.No Immediate Bitcoin Purchases: Some traders mistakenly expected large-scale government purchases, leading to disappointment-driven selling.This sentiment shift contributed to Bitcoin’s pullback, as traders realized the near-term impact of Trump’s plan is uncertain.MicroStrategy’s (Strategy’s) Silence Adds to Market ConcernsBitcoin’s dip was exacerbated by Michael Saylor’s March 2 announcement that Strategy (formerly MicroStrategy) did not increase its BTC holdings beyond 499,096 BTC last week. This contradicted some traders' expectations that Saylor would “buy the dip”, especially after investing $2 billion in BTC at an average price of $97,500.Crypto analyst RunnerXBT criticized Strategy's previous Bitcoin purchases above $95,000, noting that these buys led to only short-term price spikes rather than sustained rallies.Despite this, Strategy’s long-term commitment remains intact, with Saylor’s firm expected to continue acquiring Bitcoin through its $42 billion debt and stock issuance plan.Will Bitcoin Reclaim $90K as Support?While short-term sentiment remains cautious, Bitcoin’s long-term trajectory remains bullish, supported by:- Institutional Demand – Strategy’s BTC accumulation and potential ETF inflows.- Macroeconomic Uncertainty – Concerns over global markets and inflation could drive more investors into Bitcoin.- U.S. Crypto Reserve Speculation – Even if slow-moving, regulatory clarity and government-backed holdings could boost confidence.Key Levels to Watch:- Support: $89,000 - $90,000 (critical for bullish momentum).- Resistance: $95,000 - $97,500 (if broken, BTC could rally to new highs).If Bitcoin holds above $90K, a rebound toward $95K and beyond is likely. However, failure to reclaim this level could lead to further downside, potentially testing $85K or lower in the coming weeks.